Unilever 2013 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2013 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

2011 2012 2013
3.1
4.3 3.9
FREE CASH FLOW*
€ billion
• Free cash flow of €3.9 billion
was down by €0.4 billion,
driven by higher operating
profit offset by lower inflow
from working capital.
• Consistent management
focus has resulted in
negative working capital for
13 consecutive quarters.
The net outflow from investing activities was €0.4 billion higher
than the previous year. Whilst net capital expenditure and interest
were broadly unchanged, the net inflow of acquisitions, disposals
and other investing activities was €0.8 billion compared to €1.2
billion in 2012. Our net capital expenditure of €2.0 billion, or 4.1%
of turnover, reflects the investment in capacity to support our
growing business.
Net cash outflow from financing activities was €1.2 billion lower
than the prior year. Of the €5.4 billion outflow, €2.9 billion was
used for the acquisition of non-controlling interests in 2013 partly
financed by a €1.3 billion net inflow from movements in financial
liabilities and short-term borrowings. In comparison, we used our
cash to reduce net financial liabilities and short-term borrowings
by €3.0 billion in 2012.
Cash and cash equivalents held at the year end were €0.2 billion
lower at €2.0 billion.
ASH FLOW
Net cash flow from operating activities was €6.3 billion, a
reduction of €0.5 billion over the previous year. The chief
contributors were an increase in operating profit of €0.5 billion
offset by a lower inflow from working capital, which is measured
against a strong performance in 2012, and currency headwinds.
Unilever has consistently enjoyed a negative working capital
position as a result of tight management attention across the
supply chain – indicative of careful attention to maintaining a
strong financial and liquidity position. Better forecasting and
planning processes led to lower inventories of €0.5 billion, while
receivables increased by €0.4 billion and mutually beneficial
terms negotiated with strategic vendors resulted in higher
payables of €0.1 billion.
 mllon
2013
€ million
2012
€ million
2011
Net cash flow from
operating activities 6,294 6,836 5,452
Net cash flow from/(used in)
investing activities (1,161) (755) (4,467)
Net cash flow from/(used in)
financing activities (5,390) (6,622) 411
Net increase/(decrease) in cash
and cash equivalents (257) (541) 1,396
Cash and cash equivalents
at 1 January 2,217 2,978 1,966
Effect of foreign exchange
rate changes 84 (220) (384)
Cash and cash equivalents
at 31 December 2,044 2,217 2,978
29Strategc reportUnlever Annual Report and Accounts 2013